Optimism about energy legislation, natural gas supply

Paul DeCotis, the state’s deputy secretary of energy for Gov. David Paterson, said at a breakfast meeting this morning that he is hopeful the Legislature can pass both a state energy planning bill as well as a new power plant siting bill this year.

The Legislature has been trying to pass a new power plant siting law for years that would smooth the way for new generation plants to be built in New York. The previous law, known as Article 10, expired in 2003.

The Legislature is also interested in passing a $2 million energy planning bill.

“I think the siting legislation can happen without the planning process,” DeCotis said at the breakfast, which was held at the Fort Orange Club and sponsored by the Energy Association of New York State and the Northeast Gas Associattion.

Thomas Kiley, CEO of the Northeast Gas Association, said $1 billion in investments are being made in New York to build natural gas pipelines and deliver more gas to the state. Four pipeline projects are expected to be completed by November.

That new supply should have a positive impact on natural gas prices, said Patrick Curran, executive director of the Energy Association.

Natural gas prices have been rising in New York, especially as natural gas is used increasingly for electric generation. Consumers also use it to heat about half of the homes in the state.

“It can only help,” Curran said of the impact supply would have on pricing.